New Freedom Funds

Third Party Procurement

Frequently Asked Questions

Q = Question; A = Answer

Q. Can FTA New Freedom funds be used to purchase mobile data terminals for the ADA paratransit system service, i.e., since ADA does not require MDTs does this qualify as "going beyond" the ADA as required by the New Freedom regulations?

A. NFI funds must be used to expand the range of transportation services to persons with disabilities, such as the acquisition of new vehicles or the purchase of additional service capacity. Mobile data terminals are an overhead operating expense for most demand-responsive systems and should have already been installed as a practical business practice. But as part of a broader Mobility Management program, they may be an eligible expense - see FTA's New Freedom Circular 9045.1. (Posted: 02-2009)

Q. Can the subrecipient report in-kind, cash and donations as expenses?

The subrecipient has a New Freedom contract. The contract consists of mobility management and operating costs. They have a volunteer driver program. They reported private donations as farebox revenue.

A. New Freedom funds may be used to finance capital and operation expenses for new projects and/or services that go beyond the requirements of the ADA. The local share of eligible costs cannot be less than 20 percent of the net cost of the project. All of the local share must be provided from sources other than Federal DOT funds. Cash donations, in this case reported as farebox revenue, is an eligible expense, provided the funds are not coming from a Federal DOT source. Non-cash and other in-kind contributions are eligible to be used as local match as long as the value of each is documented and supported, represents a cost which would otherwise be eligible under the program, and is included in the net project costs in the project budget. (Posted: July, 2010)